Fri 07/02/2021 12:39 PM
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Advisors from Rothschild have been hired to launch a sale for U.K.-based contract research organization Veramed, sources told Reorg. The family owned company is being marketed at EBITDA of £10 million to £11 million and the auction process is expected to kick off in September. Continue reading for our EMEA Middle Market team's reporting on a potential Veramed sale, and request a trial to access reporting and analysis on hundreds more middle market credits. 

A number of investors have expressed interest in Veramed given the CRO sector has been a ‘safe haven’ for both direct lenders and private equity in the past few years, sources said. Recent activity in the sector includes Five Arrows’ acquisition of Sygnature Discovery and Crescent Capital’s refinancing of Avania.

Sources said that investors who lost out on Sygnature Discovery may turn their attention to both Veramed and TMC Pharma, which is also set to come to market in September.

Direct lenders typically provide leverage of 5-6x to CRO assets with clear recurring revenue, and private equity can offer valuations of 15x, sources said.

Veramed provides biostatistics consulting services for the design, reporting and analysis of clinical trials. The company was founded by current owners Matt and Emma Jones in 2010 and has operations in the U.K., Ukraine and the U.S.

Rothschild declined to comment and Veramed did not respond to Reorg’s request for comment.

--Lara Gibson
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